{"id":10551,"date":"2025-05-27T11:53:52","date_gmt":"2025-05-27T11:53:52","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=10551"},"modified":"2026-08-07T05:52:57","modified_gmt":"2026-08-07T05:52:57","slug":"what-is-an-ipo-and-how-to-invest-in-it","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/what-is-an-ipo-and-how-to-invest-in-it\/","title":{"rendered":"What is an IPO and How to Invest in it?"},"content":{"rendered":"<ul><li><a class=\"aioseo-toc-item\" href=\"#aioseo-what-is-initial-public-offering-ipo-2\">What is Initial Public Offering (IPO)?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-types-of-ipo-initial-public-offering-4\">Types of IPO (Initial Public Offering)<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-fixed-price-issue-6\">Fixed Price Issue<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-book-building-issue-8\">Book Building Issue<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-how-does-an-ipo-work-10\">How Does an IPO Work?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-preparation-phase-12\">Preparation Phase<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-filling-of-drhp-draft-red-herring-prospectus-14\">Filling of DRHP (Draft Red Herring Prospectus)<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-selection-of-stock-exchange-16\">Selection of Stock Exchange<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-marketing-phase-18\">Marketing Phase<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-pricing-20\">Pricing<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-allocation-22\">Allocation<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-public-launch-24\">Public Launch<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-how-to-invest-in-an-ipo-26\">How to Invest in an IPO?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-historic-returns-from-ipo-28\">Historic Returns from IPO<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-benefits-of-investing-in-initial-public-offering-30\">Benefits of Investing in Initial Public Offering<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-drawbacks-of-investment-in-ipo-32\">Drawbacks of Investment in IPO<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-terms-you-should-know-related-to-ipo-34\">Terms You Should Know Related to IPO<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-things-to-remember-before-investing-in-ipo-36\">Things to Remember Before Investing in IPO<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-conclusion-38\">Conclusion<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-key-takeaways-51\">Key Takeaways<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-frequently-asked-questions-42\">Frequently Asked Questions<\/a><\/li><\/ul>\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">IPO (Initial Public Offering) is a popular term in the stock market industry. It offered a chance to the investors to get in early on a company\u2019s growth journey. But <strong>what is an IPO in the stock market<\/strong> and how does it work? This blog will break down everything related to the term, from the meaning of IPO, types of IPO, how to invest in IPO, to the risks and returns of it. If you are a beginner in the stock market and seeking to know about it this guide will help you understand it to make your journey successful.&nbsp;&nbsp;<\/p>\n\n\n\n<blockquote style=\"border-left:4px solid #e8622f;background:#fdf1ec;padding:18px 22px;margin:1.5em 0;line-height:1.8\"><strong>&#128161; Quick Answer<\/strong><br>An Initial Public Offering (IPO) is the process of a private company offering its shares to the public for the first time so it can list on a stock exchange and raise capital. In India the company must file a draft prospectus with SEBI before the issue opens.<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-1\" style=\"color:#023368\" id=\"aioseo-what-is-initial-public-offering-ipo-2\">What is Initial Public Offering (IPO)?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">An <strong>Initial Public Offering<\/strong> or <a href=\"https:\/\/navia.co.in\/blog\/category\/ipo-investments\/\">IPO<\/a> is the process of a private company offering their shares to the public for the first time to get listed on a stock exchange. It allows the company to <a href=\"https:\/\/navia.co.in\/blog\/fresh-issue-vs-ofs-key-differences\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=ipo\" title=\"Fresh Issue vs OFS: Key Differences Every IPO Investor Should Know\">raise capital<\/a> from public investors, that is used for their business expansion, debt repayment or general corporate purposes.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">In simple words, IPO in the stock market refers to a company\u2019s debut in the public equity market.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-2\" style=\"color:#023368\" id=\"aioseo-types-of-ipo-initial-public-offering-4\">Types of IPO&nbsp;(Initial Public Offering)<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">There are two types of IPO\u2019s available, they are;&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-3\" style=\"color:#ec4d37\" id=\"aioseo-fixed-price-issue-6\"><strong>Fixed Price Issue<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">When a company decides to sell its shares to the public for the first time at a pre-determined price, it is known as a Fixed Price IPO. In this method, the issue price of the shares is disclosed in advance to the investors. To apply for shares, investors must pay the full price at the time of application. And the demand for the issue is revealed only after the issue closes.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-4\" style=\"color:#ec4d37\" id=\"aioseo-book-building-issue-8\"><strong>Book Building Issue<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">In Book Building Issue the company initiates an IPO and offers 20% price bans on the stocks. The investors can bid on the shares before they decide the final price. But they must mention the number of shares and the amount they are ready to pay per share in detail. The lowest share price is known as the floor price and the highest stock price known as the cap price. And the final decision about the price of the share is determined by the investor&#8217;s bids.&nbsp;&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-fe48e5de wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color has-background has-link-color wp-element-button\" href=\"https:\/\/navia.co.in\/app.html\" style=\"background-color:#ec4d37\"><strong>Get Navia APP<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-5\" style=\"color:#023368\" id=\"aioseo-how-does-an-ipo-work-10\">How Does an IPO Work?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The IPO process includes some key steps and is called as the IPO cycle, they are;&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-6\" style=\"color:#ec4d37\" id=\"aioseo-preparation-phase-12\"><strong>Preparation Phase<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Before initiating IPO, the company should prepare financial statements, business plans and other essential documents.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-7\" style=\"color:#ec4d37\" id=\"aioseo-filling-of-drhp-draft-red-herring-prospectus-14\"><strong>Filling of DRHP (Draft Red Herring Prospectus)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The company must register it with regulatory authority <a href=\"https:\/\/www.sebi.gov.in\/\" target=\"_blank\" rel=\"noopener\">SEBI (Securities and Exchange Board of India)<\/a> in India. They should submit detailed information about the company business model, financials and risks.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-8\" style=\"color:#ec4d37\" id=\"aioseo-selection-of-stock-exchange-16\"><strong>Selection of Stock Exchange<\/strong>&nbsp;&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Now the company should select the exchange there they have to list its shares; they have to follow an application of the selected exchange.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-9\" style=\"color:#ec4d37\" id=\"aioseo-marketing-phase-18\"><strong>Marketing Phase<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The company and their underwriters conduct a \u201croadshow\u201d there they will meet other <strong><a href=\"https:\/\/navia.co.in\/blog\/category\/investments\/\">investors<\/a><\/strong> to promote their IPO.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-10\" style=\"color:#ec4d37\" id=\"aioseo-pricing-20\"><strong>Pricing<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The pricing of the IPO is based on the demand of the investors and the final prospects called Red Herring Prospectus (RHP).&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-11\" style=\"color:#ec4d37\" id=\"aioseo-allocation-22\">Allocation&nbsp;&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The shares of the company are allocated to different categories like Qualified Institutional Buyers (QIB), <a href=\"https:\/\/navia.co.in\/blog\/ipos-and-retail-investors\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=ipo\" title=\"IPOs and Retail Investors: What to Know in 2026\">Retail Individual Investors<\/a> and Non-Institutional Investors.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-12\" style=\"color:#ec4d37\" id=\"aioseo-public-launch-24\"><strong>Public Launch<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">After listing company shares on the stock exchange like the <a href=\"https:\/\/www.bseindia.com\/\" target=\"_blank\" rel=\"noopener\">Bombay Stock Exchange (BSE)<\/a> or <a href=\"https:\/\/www.nseindia.com\/\" target=\"_blank\" rel=\"noopener\">National Stock Exchange (NSE)<\/a>, on the IPO day the shares are available for trading and the public can buy or sell the shares at market prices.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-13\" style=\"color:#023368\" id=\"aioseo-how-to-invest-in-an-ipo-26\">How to Invest in an IPO?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Here\u2019s a simple step-by-step guide to help you get started with IPO investments through Navia:<\/p>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\"><li style=\"margin-bottom:0.8em;line-height:1.8\">Step 1: Open a Demat and Trading Account with Navia<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">Step 2: Log in to the Navia app and navigate to the \u2018Account\u2019 section<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">Step 3: Tap on \u2018IPO\u2019 to view the list of currently open IPOs<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">Step 4: Select the IPO you wish to bid for and click \u2018Apply\u2019<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">Step 5: Enter your bid details such as quantity and price (within the specified price band), and proceed using your net banking or <a href=\"https:\/\/navia.co.in\/blog\/how-to-apply-for-an-ipo-through-upi\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=ipo\" title=\"How to Apply for an IPO Through UPI\">UPI payment method<\/a><\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">Step 6: Your funds will be blocked in your account until allotment<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">Step 7: Check your <a href=\"https:\/\/navia.co.in\/blog\/understanding-ipo-allotment-and-listing-process\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=ipo\" title=\"Understanding IPO Allotment and Listing Process\">allotment status<\/a>\u2014if allotted, the shares will be credited to your Demat account<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-14\" style=\"color:#023368\" id=\"aioseo-historic-returns-from-ipo-28\">Historic Returns from IPO&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">You must understand that a stock may not continue to trade at or above the initial offering price. Once it\u2019s started <a href=\"https:\/\/navia.co.in\/blog\/category\/trading\/\">trading<\/a> in on a stock exchange you should prepare your mind to face both profit and loss. Most people buy invest in IPOs to enter the company\u2019s early stage of life cycle to get potential future growth.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The screenshot presents a review of the Life Insurance Corporation of India (LIC) IPO performance from June 2024 to April 2025, highlighting the fact that IPO returns can fluctuate within milliseconds.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">*Source: Screener&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"439\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/05\/image-1024x439.jpeg\" alt=\"LIC IPO share price performance from June 2024 to April 2025, source Screener\" class=\"wp-image-10553\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/05\/image-1024x439.jpeg 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/05\/image-300x129.jpeg 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/05\/image-150x64.jpeg 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/05\/image-768x329.jpeg 768w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/05\/image.jpeg 1234w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-15\" style=\"color:#023368\" id=\"aioseo-benefits-of-investing-in-initial-public-offering-30\">Benefits of Investing in Initial Public Offering&nbsp;<\/h2>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\"><li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Early Investment Opportunity: <\/strong>Be among the first investors in a potentially high-growth company.&nbsp;<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Potential Listing Gains: <\/strong>Some of the IPOs deliver strong returns on listing day.&nbsp;&nbsp;<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Transparency: <\/strong>Regulatory filings and disclosures before the IPO offer detailed insights.<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Brand Value: <\/strong>Often involves popular and growing companies entering the market.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/open.navia.co.in\/index-navia.php?utm_source=Organic&amp;utm_medium=blog&amp;utm_campaign=blog&amp;utm_content=ipo_CTA\" rel=\"follow\"><img decoding=\"async\" width=\"1024\" height=\"149\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC.png\" alt=\"Open a free Navia demat account to apply for IPOs\" class=\"wp-image-9412\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC-300x44.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC-150x22.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC-768x112.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-16\" style=\"color:#023368\" id=\"aioseo-drawbacks-of-investment-in-ipo-32\">Drawbacks of Investment in IPO&nbsp;<\/h2>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\"><li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Uncertainty: <\/strong>It has the chance of underperforming stock after listing.&nbsp;<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Overvaluation Risk: <\/strong>IPOs can be overpriced based on hype.<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Limited Information: <\/strong>Financial history may be limited, especially for newer companies.&nbsp;<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Allotment Not Guaranteed: <\/strong>High demand may result in partial or no allotment.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-17\" style=\"color:#023368\" id=\"aioseo-terms-you-should-know-related-to-ipo-34\">Terms You Should Know Related to IPO&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>IPO GMP (Grey Market Premium)<\/strong>&nbsp;<\/td><td>An unofficial premium at which IPO shares are traded before listing&nbsp;<\/td><\/tr><tr><td><strong>Underwriter<\/strong>&nbsp;<\/td><td>Third party like broker or financial institutions to assist with you underwriting the stocks&nbsp;<\/td><\/tr><tr><td><strong>Lot Size<\/strong>&nbsp;<\/td><td>The minimum number of shares you can apply for&nbsp;<\/td><\/tr><tr><td><strong>Price Band<\/strong>&nbsp;<\/td><td>The range in which you can place your bid&nbsp;<\/td><\/tr><tr><td><strong>DRHP (Draft Red Herring Prospectus)<\/strong>&nbsp;<\/td><td>A preliminary document of a company that submit to SEBI&nbsp;<\/td><\/tr><tr><td><strong>ASBA (Application Supported by Blocked Amount)<\/strong>&nbsp;<\/td><td>Where your money is blocked until allotment&nbsp;<\/td><\/tr><tr><td><strong>Fixed Price IPO<\/strong>&nbsp;<\/td><td>The predetermined issue price decided by a company&nbsp;<\/td><\/tr><tr><td><strong>Under Subscription<\/strong>&nbsp;<\/td><td>It occurs when investor demand is lower than the number of shares offered&nbsp;<\/td><\/tr><tr><td><strong>Oversubscription<\/strong>&nbsp;<\/td><td>It occurs when investor demand exceeds the number of shares offered.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-18\" style=\"color:#023368\" id=\"aioseo-things-to-remember-before-investing-in-ipo-36\">Things to Remember Before Investing in IPO<\/h2>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\"><li style=\"margin-bottom:0.8em;line-height:1.8\">Read and understand <a href=\"https:\/\/www.nism.ac.in\/understanding-drhp-rhp-and-prospectus\/\" target=\"_blank\" rel=\"noopener\">DRHP<\/a> to get information about the company\u2019s financials and risks.&nbsp;<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">IPOs are not risk-free so assess your risk appetite.&nbsp;<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">Always you need a well-defined investment strategy before investing in an IPO.&nbsp;<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">Note the lock-in period, this is the duration during which you cannot sell or trade the shares after making the initial investment.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-19\" style=\"color:#023368\" id=\"aioseo-conclusion-38\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">IPO offers a golden opportunity to all the investors to invest in leading companies at the early stage and face the benefits and risks together. So before diving into the big market you must be aware about <strong>what is an IPO<\/strong>, <strong>how does an IPO work<\/strong> and the related terms like <strong>IPO GMP<\/strong> and <strong>IPO investment process<\/strong> that will help you make good decisions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Want to get started with IPO investing? Open your demat account today in <strong><a href=\"https:\/\/navia.co.in\/\">Navia<\/a> <\/strong>and tap into the next big market debut!&nbsp;<\/p>\n\n\n\n<h3 id=\"aioseo-key-takeaways-51\" class=\"wp-block-heading has-text-color has-link-color wp-elements-20\" style=\"color:#ec4d37\">Key Takeaways<\/h3>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\"><li style=\"margin-bottom:0.8em;line-height:1.8\">An IPO is a private company&#8217;s first sale of shares to the public, used to raise capital for expansion, debt repayment or general corporate purposes.<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">The two types are a Fixed Price Issue, where the price is disclosed up front, and a Book Building Issue, where investors bid within a price band.<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">The IPO cycle runs from preparation and the DRHP filing with SEBI, through exchange selection, the roadshow, pricing and allocation, to the public launch.<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">Applying through Navia takes seven steps, from opening a demat account to checking allotment; your funds stay blocked until shares are allotted.<\/li><li style=\"margin-bottom:0.8em;line-height:1.8\">IPOs offer early entry and possible listing gains, but carry overvaluation risk, limited financial history and no guarantee of allotment.<\/li><\/ul>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>Do You Find This Interesting?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-paragraph\">We\u2019d Love to Hear from you-<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc\"><img decoding=\"async\" width=\"300\" height=\"64\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1.png\" alt=\"feedback yes or no button\" class=\"wp-image-8901\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-21\" style=\"color:#023368\" id=\"aioseo-frequently-asked-questions-42\">Frequently Asked Questions<\/h2>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">How long does it take to process an IPO?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">An IPO typically takes 4 to 6 months to process from planning to listing.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">What is an IPO?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">An IPO (Initial Public Offering) is the process by which a private company offers its shares to the public for the first time to raise capital.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Is IPO a good investment option?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">An IPO can be a good investment if the company has strong fundamentals and growth potential, but it also carries risks due to market volatility and limited historical data.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Is it risky to buy an IPO?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Yes, buying an IPO can be risky due to limited performance history, potential overvaluation, and high market volatility after listing.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">What is the minimum investment required to invest in IPO?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">The minimum investment required to invest in an IPO in India is depending on the company lot size and price.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Can I pre-apply for IPO?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Yes, you can pre-apply for an IPO through supported brokers or trading platforms.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Can I sell my shares after IPO?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Yes, you can sell your shares after the IPO once they are listed and if there is no lock-in period.<\/p>\n\n<\/details>\n\n\n\n<p style=\"font-size:13px;line-height:1.6;color:#777\"><strong>DISCLAIMER:<\/strong> Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit. Full disclaimer: <a href=\"https:\/\/bit.ly\/naviadisclaimer\" target=\"_blank\" rel=\"noopener\">https:\/\/bit.ly\/naviadisclaimer<\/a><\/p>\n\n\n","protected":false},"excerpt":{"rendered":"<p>IPO (Initial Public Offering) is a popular term in the stock market industry. It offered a chance to the investors to get in early on a company\u2019s growth journey. But what is an IPO in the stock market and how does it work? This blog will break down everything related to the term, from the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10566,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[205],"tags":[50,347,335,334,8],"class_list":["post-10551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo-investments","tag-ipo","tag-ipo-allotment-process","tag-ipo-listing","tag-ipo-process","tag-sebi"],"aioseo_notices":[],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/05\/WhatsApp-Image-2025-05-27-at-16.51.43.jpeg","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"jetpack_featured_media_url":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/05\/WhatsApp-Image-2025-05-27-at-16.51.43.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/10551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=10551"}],"version-history":[{"count":18,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/10551\/revisions"}],"predecessor-version":[{"id":18964,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/10551\/revisions\/18964"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/10566"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=10551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=10551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=10551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}